• $0.96 fully diluted earnings per share
• $122 million net income
• $162 million consolidated EBITDA
• Record level of scope backlog in E&C Group, excluding impact of currency translation
• 15.2 million man-hours in E&C Group backlog, second highest-ever quarter

Foster Wheeler AG (Nasdaq: FWLT) today reported net income for the second quarter of 2009 of $122.2 million, or $0.96 per diluted share, compared with $160.8 million, or $1.11 per diluted share, in the second quarter of 2008. Net income in both quarterly periods was impacted by items as detailed in the attached table. Excluding such items from both quarterly periods, net income in the second quarter of 2009 was $124.0 million, or $0.98 per diluted share, compared with $142.5 million, or $0.98 per diluted share, in the second quarter of 2008.

Second-quarter 2009 consolidated EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was $162.0 million, compared with $220.4 million in the second quarter of 2008. Consolidated EBITDA in both quarterly periods was also impacted by items as detailed in the attached table. Excluding such items from both quarterly periods, consolidated EBITDA in the second quarter of 2009 was $163.7 million, compared with $202.2 million in the second quarter of 2008.

For the first six months of 2009, net income was $195.1 million, or $1.54 per diluted share, compared with $298.8 million, or $2.06 per diluted share, for the first six months of 2008. Consolidated EBITDA for the first six months of 2009 was $267.5 million, compared with $415.7 million for the first six months of 2008. The six-month periods of 2009 and 2008 included items as outlined in the table accompanying this press release.

The following tables present quarterly and average quarterly data, both as reported and as adjusted. The company believes that quarterly averages provide meaningful comparative relevance for certain key metrics in light of the significant quarter-to-quarter variability that is inherent in the company’s financial results.

Foster Wheeler’s Chairman and Chief Executive Officer, Raymond J. Milchovich, said, “The company’s net income in the second quarter of 2009 was driven by very strong EBITDA generation. Specifically, the company reported an increase in consolidated EBITDA in the second quarter of 2009 as compared to the average quarter of 2008, excluding the impact of approximately $17 million of unfavorable currency translation. The increase was due to outstanding commercial and operational performance in both of our business groups. In addition, the strong performance of our Global Engineering and Construction Group was bolstered by its ability to capture available profit enhancement opportunities during the quarter. Also, our Global Power Group’s performance benefited from the actions it has taken over the past several years in the pursuit of commercial and operational excellence.”

Global Engineering and Construction (E&C) Group

• EBITDA in the second quarter of 2009 was $145 million, excluding the impact of approximately $14 million of unfavorable currency translation (reported Q2 2009 EBITDA calculated at average 2008 exchange rates). EBITDA was driven by outstanding commercial and operational performance and the capture of available profit enhancement opportunities.
• Despite the lack of any new “mega” contract booked during the period, new orders booked in Foster Wheeler scope remained at a very strong level. New orders contributed to an all-time record level of scope backlog of $1.98 billion in the second quarter of 2009, excluding the impact of approximately $218 million of unfavorable currency translation (reported Q2 2009 scope backlog calculated at the exchange rates in effect at the end of Q2 2008, when the company had reported record scope backlog). Man-hours in backlog at the end of the second quarter of 2009 amounted to 15.2 million, the second-highest in the company’s history.
• Scope operating revenues were below the average quarter of 2008, primarily due to a modestly lower volume of work executed combined with approximately $52 million of unfavorable currency translation (as compared to average 2008 exchange rates).

Global Power Group (GPG)

• EBITDA was modestly below the average quarter of 2008 due to lower revenues and an unfavorable currency translation impact of approximately $3 million, when comparing Q2 2009 exchange rates to 2008 average exchange rates. Nonetheless, EBITDA margin on scope revenue was above the average of 2008, reflecting outstanding commercial and operational performance.
• Scope new orders and operating revenues were below the average quarter of 2008 due to continued weakness in global demand for solid fuel boilers.

In commenting on the market outlook for the company’s two business units, Milchovich said, “The competitive pressure in our E&C Group is somewhat more pronounced than it was at this time last year. However, as we have consistently reported, we have an extensive prospect list that offers numerous examples of clients who are planning to proceed with projects. After posting a record level of currency-adjusted scope backlog in E&C – and with a near-record 15.2 million man-hours in backlog – we believe we are demonstrating our ability to win targeted projects in a competitive environment. In our Global Power Group, demand for solid fuel boilers has been very weak. Nevertheless, we believe several clients are likely to make award decisions in the second half of 2009 and, given our global leadership position in circulating fluidized-bed boilers, we expect a very high win rate, assuming the projects go forward. As an example, last week we received an award for a 55-megawatt CFB in Poland. Even with such wins, we anticipate that business conditions will remain challenging for our power business.”

Share Repurchase Program

On September 12, 2008, the company announced that its board of directors had authorized a $750 million share repurchase program. The company purchased no shares under the program during the second quarter of 2009. To date, the company has purchased 18.1 million common shares and has approximately $265 million remaining under the existing authorization.

Net Income Attributable to Foster Wheeler AG

All references to net income in this news release indicate net income attributable to Foster Wheeler AG.

Calculation of EBITDA

EBITDA is a supplemental financial measure not defined in generally accepted accounting principles (GAAP). The Company defines EBITDA as net income attributable to Foster Wheeler AG before interest expense, income taxes, depreciation and amortization. The Company has presented EBITDA because it believes it is an important supplemental measure of operating performance. Certain covenants under our current and prior senior credit agreements use an adjusted form of EBITDA such that in the covenant calculations the EBITDA as presented herein is adjusted for certain unusual and infrequent items specifically

excluded in the terms of our current and prior senior credit agreements. The Company believes that the line item on its consolidated statement of operations entitled "net income attributable to Foster Wheeler AG" is the most directly comparable GAAP financial measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income attributable to Foster Wheeler AG as an indicator of operating performance or any other GAAP financial measure.

EBITDA, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As EBITDA excludes certain financial information that is included in net income attributable to Foster Wheeler AG, users of this financial information should consider the type of events and transactions that are excluded.

The Company's non-GAAP performance measure, EBITDA, has certain material limitations as follows:

• It does not include interest expense. Because the Company has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations;
• It does not include taxes. Because the payment of taxes is a necessary and ongoing part of the Company's operations, any measure that excludes taxes has material limitations; and
• It does not include depreciation and amortization. Because the Company must utilize property, plant and equipment and intangible assets in order to generate revenues in its operations, depreciation and amortization are necessary and ongoing costs of its operations. Therefore, any measure that excludes depreciation and amortization has material limitations.

Calculation of EBITDA Margin

Segment EBITDA margin is calculated by dividing business unit operating revenues in Foster Wheeler Scope into business unit EBITDA.

Foster Wheeler Scope

Foster Wheeler Scope represents that portion of unfilled orders, new orders booked and operating revenues on which profit can be earned. Foster Wheeler Scope excludes revenues relating to third-party costs incurred by the Company as agent or principal on a reimbursable basis. The Company began comprehensively reporting Foster Wheeler Scope as of 2005.

Conference Call Information

Foster Wheeler AG plans to hold a conference call today, Wednesday, August 5, at 10:00 a.m. (Eastern) to discuss its financial results for the quarter ended June 30, 2009.

The call will be accessible to the public by telephone or webcast, and the company will post an accompanying slide presentation in the investor relations section of its web site (www.fwc.com). To listen to the call by telephone, dial 719-325-4745 (conference I.D. No. 1903141) approximately ten minutes before the call. The conference call will also be available over the Internet at www.fwc.com or through StreetEvents at www.streetevents.com.

A replay of the call will be available on the company's web site as well as by telephone. The replay can be accessed on the company's web site for four weeks following the call. The replay will be available by telephone for two weeks following the call and can be accessed by dialing 719-457-0820 (replay passcode 1903141 required).

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs over 14,000 talented professionals with specialized expertise dedicated to serving clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The Company is based in Zug, Switzerland, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management’s assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company’s expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company’s most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company’s redomestication, further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company’s liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by non-U.S. and U.S. domestic companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

Foster Wheeler AG
Media
Maureen Bingert, 908-730-4444
maureen_bingert@fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries, 908-730-4000
fw@fwc.com